Fired Ballfield Contractor Sues Town

Company Says Its Reputation Damaged

HADDAM — A Middlefield company has sued the town, charging Haddam damaged its reputation by wrongfully terminating its contract to construct the Jail Hill Road ballfields complex.

Xenelis Construction Co. Inc. seeks monetary damages from the town in excess of $15,000. The 19-page lawsuit, filed in Superor Court in Middletown, contends the town's decision to terminate the contract was without merit and in ``bad faith.''

The legal action, filed by Hartford-based lawyer Timothy T. Corey on behalf of Xenelis, charges the town's action aimed to harm the company financially and strengthen the town's negotiating position ``with respect to various outstanding claims by Xenelis for payment for outstanding contract balances and for extra and additional work performed by Xenelis.''

In July, First Selectman Tony Bondi said he was frustrated with Xenelis' performance. The town has a $395,905 pact with the firm to build the ballfields. He threatened legal action if the company didn't complete one soccer and two baseball fields properly.

At that time, Bondi claimed the soccer fields needed to be substantially regraded, additional rocks needed to be removed from playing surfaces, and additional drainage work had to be completed. He warned that no further delays, except for uncooperative weather, would be tolerated.

The lawsuit claims the company has suffered ``severe damage'' to its reputation in the construction industry and a ``loss of good will, trust, and confidence'' with subcontractors it needs for other jobs. It claims the town's action also caused ``severe and irreparable harm'' to the company's relations with banks, bonding companies and prospective clients.

The legal action, first reviewed by Bondi on Tuesday, claims the town's failure to inform bidders about the extent of ledge forced unanticipated work in excess of the project's specifications.

The lawsuit claims the increase in the scope of work demanded by the town forced the company to maintain personnel and equipment at the site for a substantially longer period than had been planned or scheduled, increasing bond and insurance premium costs to the company.

It also claims the town ``misappropriated labor, materials, and services'' supplied by Xenelis to an extent that constitutes ``statutory theft'' and entitles the company to triple damages under state law. Besides money damages in excess of $15,000, the plaintiff's seek pre-judgment interest, triple damages related to the claim of theft, and reimbursement of legal costs.

Bondi said Wednesday that Xenelis' charges were without merit. He said the town, which has paid Xenelis about $414,000, twice agreed to extend deadline dates. The selectman said the town will now be forced to hire additional contractors to complete Xenelis' subpar performance, including the raking of fields to remove small rocks and reseeding and fertilizing fields that did not take.

``I finally reached a level of frustration and exasperation,'' Bondi said of Xenelis. ``[The owner] wasn't meeting any of our deadlines. All we got were no show-ups, even if they did it wasn't for a full day ... He just did not put in the time.''